Lawsuit: Association Dues Assurance Corporation Publishes Private Debt Information

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Note: This case has been resolved.

Two Michigan condo owners have filed a proposed class action lawsuit against Association Dues Assurance Corporation (ADAC) over claims that it violated the Fair Debt Collection Practices Act and Michigan state law by publishing their private debt information in foreclosure sale advertisements. According to the lawsuit, the defendant sent the plaintiffs a letter informing them that unless they paid pre-foreclosure costs and what the suit refers to as “excessive” fees, the defendant would begin the foreclosure process on their property. The complaint alleges that in an attempt to coerce payment, the defendant then illegally published the plaintiffs’ private debt information, including their names, address, and the state of their defaulted debt, in public advertisements for the sale of their home.

The suit argues that ADAC “goes beyond” what is required to be included in public foreclosure notices under Michigan state law and publishes “private, protected” debt information, in violation of federal law. “Further,” the complaint continues, “the private information that ADAC is placing in public view is false, misleading and deceptive in that ADAC is falsely representing that it is only providing the debt information to conform with the Michigan Foreclosure or Condominium Statute.”